Foreign Businesses in Vietnam Ask for Clearance of Legal Obstacles

Tuan Minh

16:26 17/05/2017

BizLIVE - A number of foreign business associations have asked the Vietnamese government to clear hurdles in the business environment.

Foreign Businesses in Vietnam Ask for Clearance of Legal Obstacles

From left: chairmen of KoCham, JBAV, EuchoCham and AmCham. Photo: Minh Tuan

Representatives of the largest foreign investors in Vietnam have named obstacles that the Vietnamese government needs to remove to better the investment climate and boost trade flows as well as overseas investment.
Chairman of KoCham Vietnam Rya Hang Ha commented that foreign companies investing in Vietnam are getting “tougher and tougher” with an increasing number of regulations.
He put forward solutions to help businesses dominate new industries and remove non-tariff barriers between Vietnam and the Republic of Korea after a bilateral free trade agreement took effect in December 2015.
Meanwhile, Chairman of the Japan Business Association in Vietnam (JBAV) Hiroshi Karashima asked for more transparency and fairness in implementation and interpretation of laws and regulations.
He cited a Japan Bank of International Cooperation-led survey on Japanese companies as saying that Vietnam is ranked fourth among countries with investment outlook in the middle term. The top suggestion of Japanese firms looking to invest in Vietnam was to improve transparency, operational standards and interpretation of Vietnamese laws.
“The catalyst for effective investment in Vietnam is to clarify interpretation and implementation of laws and regulations,” he stressed.
PM Nguyen Xuan Phuc shakes hands with foreign business representatives before the meeting with the business community in Hanoi on May 17. Photo: VGP 
For his part, Chairman of EuroCham Vietnam Jens Ruebbert said the EU-Vietnam Free Trade Agreement (EVFTA), which is expected to come into effect next year, will pave the path for a new strong wave of investment from Europe to Vietnam and help increase trade by 50% in the coming years.
To ride this wave, the EuroCham representative proposed the government modify the legislation to create a playing field for investors of medical equipment and attract more investment in this sector.
In addition, EuroCham asked the government to build a true renewable energy market by allowing direct power purchasing agreement (DPPA) between the producers and distributors.
Chairman of AmCham Vietnam Jonathan Moreno proposed eliminating troublesome and costly technical barriers in trade, which may hinder a free trade agreement between Vietnam and the United States.
He listed out a number of barriers that need clearing such as those related to food safety, new licensing, electronic payment and economic needs test for retail.
The business associations also asked the Vietnamese government to work more to facilitate customs clearance and reduce tax burden for foreign companies.
This was the second meeting between PM Nguyen Xuan Phuc with the business community since he took office last year.
Attending the meeting were nearly 1,500 of the business delegates from the private sector, 200 from foreign-invested enterprises and 100 from state-owned and equitized firms. Leaders from 63 cities and provinces nationwide also joined the televised conference.



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